Electricity Market Assessment in Wind Energy Integrated Power Systems with the Potential of Flexibility: A Boundary Condition Approach

Abstract

This paper focuses on a dynamic equilibrium considering the flexible ramp market and demand response resources. With ever-swelling installation of variable renewable energies, demand response programs can play an important role in mitigating the system ramping deficiency. Hence in this paper, the ramping capability of demand response resources in procuring system ramp requirement is considered. The strategic behavior of different players is modeled through a multi-leader-common-follower game, in which suppliers and demand response aggregators are laid as the leaders and market operator is considered as the single follower of the game. In addition, a dynamic forward rolling process to find equilibria at the real-time market is proposed. The effect of considering demand response resources and flexible ramp penalty price on the strategic behavior of players in equilibrium is evaluated. Finally, the effectiveness of the proposed approach is verified on a three-firm system. While revealing demand response resources roles in mitigating ramping deficiency, the results show that how penalty price on flexible ramp violation can lead uplift payments to be formed.